Import Information


	Import Information
	» 1.	Preface
	» 2.	Customs
	» 3.	Documents
	» 4.	Description of Goods
	» 5.	Customs Value
	» 6.	Schedule
	» 7.	Competencies/Miscellaneous
	» 8.	Intra-Community Trade

I. Preface

Care is taken to offer effective protection to each economic area. German foreign law is defined by its principle of deregulation. Except for few exceptions, the exchange of goods, capital and services is generally without extra costs.

Historically, duties were collected on import, export and transit of goods for generation of public revenue. Nowadays, customs authority have a multitude of tasks, among which are the wide range of trade political measures.

The basic questions to be asked when planning imports are:

• What are the pre-conditions for goods to be allowed to be imported?

• Which documents are necessary?

• What duties are to be paid?

• At which location are the formalities to be complied with?

This leaflet is aimed to be an aid to orientation. It cannot replace a counselling interview with the IHK or the customs authorities.

The customs territory of the EU community comprises in general of the territories of its member states. Therefore an import can only be effected out of a third country. The delivery of goods from Brussels to Frankfurt is not any more an import than the delivery from London to Manchester. The exchange of goods with third countries is very different from intra- EU community trade.

II. Customs

Imports from third countries are subject to the rules established in the customs code, its provisions for the implementation and other customs and tax regulations as well as foreign law. Duties are based on the TARIC code combined with those of the country of origin of the goods.

Duties

Duty rates are implemented by community regulations and are valid throughout the European Community. Thus, the Italian authority applies the same rates as the French authorities do.

Agricultural duties are applied to certain agricultural products in order to raise the low world market price up to the EU-producer price. By this measure, the existence of agriculture within the EU is protected.

In contrast to the normal duty rate, a preferential treatment can be applied for, under certain circumstances. The preferential treatment can result in an exemption from duty, or at least, a reduced duty rate. This is possible for goods originating from countries linked to the EU (e. g. Switzerland) or from developing countries.

Taxes

Regarding the turnover tax on imports (EUSt), there exists a special form of VAT at a current rate of 19 %. It has the function of levelling out the difference between an importer and a customer trading within the home market. For companies with a pre-tax allowance, the EUSt is simply a “passing on” of tax, because EUSt which is paid as turnover tax is deducted and therefore a requirement of the Tax Office and can be subsequently claimed back.

Excise Taxes

These are collected when importing coffee, tobacco, alcoholic beverages and mineral oil applied at the same rate as if it were produced internally.

The amount of the excise duties to be paid is published in the electronic customs tariff EZT-Online.

Other duties or fees are prohibited, except for special services such as customs clearance after hours.

III. Documents

Documents required for a customs clearance are laid down in the customs code. Not each of the following documents is required for every import. Compulsory requirements are:

Import Customs Declaration

A written form of the import declaration is always required when the value of the goods amounts to € 1.000,- or more. Below this amount the import can be declared verbally. The declaration has to be submitted on the Single Administrative Document (SAD). This form can be obtained from the relevant specialized publishing houses. Alternatively, the declaration can be submitted via internet. On www.ausfuhr.internetzollanmeldung.de/iaa/authenticate.do the data is keyed into the customs’ IT-system. The finished declaration has to be printed in 2-fold, signed manually and presented along with the other documents to the customs authority. The paper version will no longer be viable as of 01.07.2009. The SAD has to be filled in as described in Merkblatt zum Einheitspapier (sorry, in German only). This will require time to fill out for the first time!

Invoice

This is based on which amount is declared as the customs value. The invoice has to display as a minimum, the following: the seller’s and buyer’s names and addresses, the place and date of issue, identification marks, numbers, and kind of packaging, exact description of the goods (customary description as to kind, condition, quality, and the like), quantity in customary units, price (fob-value, cif-charges in detail, cif-value), terms of delivery and payment. The invoice must also show the country of export and the country of origin of the goods.

Declaration of Value D.V.1

When the goods are subject to an ad valorem duty, a declaration of customs value has to be completed. Customs authority usually waive the D.V.1 if the customs value is below € 10.000,-.

Other Documents

Movement Certificate

If a preferential treatment is applied for, e. g. EUR.1 or Form A. The utilization of customs preferences is not mandatory.

Certificate of Origin

This will only be required if explicitly demanded for in EZT-Online. This requirement is mostly limited to textiles originating in certain countries.

Declaration of Origin

This is only required if explicitly demanded for in EZT-Online. This requirement is limited to textiles originating in certain countries. It can be included in the invoice or an other commercial document.

Import Permission

Required only if regulated by foreign law. If so, it is explicitly stated in EZT-Online. Permits are almost exclusively required for textiles or certain iron and steel products originating in certain countries.

Import Licence

Required only for certain agricultural goods.

Monitoring Document

Required only for certain iron and steel products originating in certain countries.

Import permission and monitoring documents are issued by the Federal Office of Economics and Export Control (BAFA).

IV. Description of Goods

In order to find the ratings of goods in the customs tariff, and therefore the relevant import regulations and duty rates, a precise knowledge of the goods concerned is essential. General descriptions like “clothes”, “chemicals”, or “electronic articles” are not sufficient. Samples of how the goods have to be declared are: “H sections, not machined other than hot-rolled, of a height of less than 80mm” or “Women's overcoats, of cotton, of a weight, per garment, not exceeding 1kg” or “Telephones for cellular networks or for other wireless networks, not for use in civil aircraft”. The easiest way to find the appropriate description is by browsing in the TARIC index of contents using the principle of exclusion.

For legal clarity reasons customs authorities in each member state issues European Binding Tariff Information (EBTI).

V. Customs Value

The customs value is the assessment basis for the calculation of the duties. This is usually the transaction value, i.e. the actual price paid or to be paid up to the place of introduction into the EU Community. This value must comprise all charges which the buyer has to bear up to the point of import (IOP). Besides the value of the goods, these are the freight and insurance charges in particular.

Charges occurring within the Community do not belong to the customs value. Intra-community freight charges are therefore to be declared separately.

Price deductions such as discounts or rebates reduce the customs value and consequently the duties.

VI. Schedule

Usually the forwarder informs the importer about the arrival of the goods. The importer then fills in the customs declaration (SAD or on the internet) and presents it to the customs authority along with the other documents required, such as invoice, DV.1 freight invoice, movement certificate if applicable. Customs can now demand an examination of the goods after which the levies are then set. After payment the importer then has the goods at his disposal.

The importer may appoint a freely chosen representative. Customs clearance may be done by himself as well.

VII. Competencies / Miscellaneous

Generally, each customs office within the Community can subject the goods to a customs examination procedure. For VAT reasons it is recommended to choose the customs office at the importer’s location. For some goods, especially those being restricted or prohibited (e.g. drugs or plants), a specialized customs office must be consulted.

Additional Factors to be Observed

For the sake of protection, a number of products are prohibited, that is to say, subject to legal restrictions. There are prohibitions or restrictions to be adhered to, i.e. certain goods may not be sold in Germany or only under certain preconditions. These are codified in special laws (e.g. Federal Consumer Products Safety Act or Narcotics Law) and apply to imported, transit and export goods as well as to goods produced locally.

VIII. Intra-Community Trade

VAT

The exchange of goods within the European Single Market.

Concerning the transfer of goods between EU states, instead of what was formerly a customs administration at the country's borders, there now exists a "Purchase Tax". For more information, please see: "Zusammenfassende Meldungen".

Details regarding VAT treatment of purchases between member states can be found at our Checkliste für umsatzsteuerfreie innergemeinschaftliche Lieferungen.

Statistics on EU Intra-Community Trade

Due to the fact that purchases between member states require no customs declaration, it is necessary to produce a separate statical registration. This can be given as a pre-printed form or online. The statistics concerning trade among member states has a range of exceptions. For example a purchaser is exempt from registration if the value of goods is under 300,000 Euro in the previous year.

The statistical Office of the Federal State of Germany offers a range of assistance for member trading, in the form of data, at: Hilfsmittel. Furthermore the introduction to the filling out of the Intrastat form, including the range of exemptions available.